SOURCE: Yadkin Valley Bank

Yadkin Valley Bank

May 09, 2011 06:30 ET

Yadkin Valley Financial Successfully Closes Capital Raise

Investors Show Abundance of Support in Private Placement

ELKIN, NC--(Marketwire - May 9, 2011) - Yadkin Valley Financial Corporation (NASDAQ: YAVY) closed a $6.4 million capital raise at the close of business May 6, 2011. Yadkin Valley Financial Corporation is the parent of Yadkin Valley Bank, a $2.3-billion-asset, full-service community bank in the Carolinas.

"We are greatly encouraged by the extraordinary support we received from across our market area to include insiders, such as the Board, executives, and employees, and selected outside investors," said Joseph H. Towell, President and CEO of Yadkin Valley Financial. "This capital raise is part of Yadkin Valley's strategic plan to increase shareholder value, and we are very pleased with this progress in a difficult market."

The Company limited the private placement to a small number of accredited investors. All members of the Company's Board of Directors participated in the placement. Directors, executives, and employees invested approximately 50 percent of the funds raised at a price of $2.25 per share, which was the closing price on April 29, 2011. All other investors participated at $1.98 per share, representing a 10 percent discount for the 10-day, weighted average price, ending on April 29, 2011. The Board of Directors has recommended to its shareholders approval of a proposal to authorize the discounted price for directors, executives, and employees. Shareholders will vote on that proposal at the Company's annual meeting on June 23, 2011.

While well-capitalized, this raise will further augment Yadkin Valley's capital position. The Company will continue to evaluate additional capital opportunities as market conditions improve. "We see this capital raise as a very positive step in our strategic plan," Towell said. "We will continue to strengthen the Company in the next year as we focus on improving asset quality, continuing to rationalize operating expenses, growing net interest margin, and managing loan growth."

About Yadkin Valley Financial Corporation
Yadkin Valley Financial Corporation is the holding company for Yadkin Valley Bank and Trust Company, a full-service community bank providing services in 38 branches throughout its three regions in North Carolina and South Carolina. The Western Region (formerly Yadkin Valley Bank division and High Country Bank division) serves Avery, Watauga, Ashe, Forsyth, Surry, Wilkes, and Yadkin Counties. The Central Region (formerly Piedmont Bank division and Cardinal State Bank division) serves Durham, Orange, Granville, Iredell and Mecklenburg Counties. The Southern Region (formerly American Community Bank division and the Huntersville and Cornelius branches of the Piedmont division) serves Mecklenburg and Union Counties in North Carolina, and Cherokee and York Counties in South Carolina. The Bank provides mortgage-lending services through its subsidiary, Sidus Financial, LLC, headquartered in Greenville, NC. Securities brokerage services are provided by Main Street Investment Services, Inc., a Bank subsidiary with four offices located in the branch network. Yadkin Valley Financial Corporation's website is www.yadkinvalleybank.com. Yadkin Valley shares are traded on NASDAQ under the symbol YAVY.

Additional Information
The securities in Yadkin Valley's private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Forward-Looking Statements
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC's Internet site (www.sec.gov). All subsequent written and oral forward-looking statements concerning Yadkin Valley or any person acting on its behalf is expressly qualified in its entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact Information

  • For more information, please contact:
    Jan H. Hollar
    EVP/Chief Financial Officer
    Email Contact
    704.768.1161

    Wm. Mark DeMarcus
    EVP/Chief Banking Officer
    Email Contact
    704.936.4363